Question : ______________ analysis is considered as dynamic.
Option 1: Internal Analysis
Option 2: Vertical Analysis
Option 3: External Analysis
Option 4: Horizontal Analysis
Correct Answer: Horizontal Analysis
Solution : Answer = Horizontal Analysis
Analysis that is horizontal in nature is regarded as dynamic analysis. This accounting study uses historical data to understand changes in financial statements over a number of accounting periods. Comparative analysis is an example of horizontal analysis.
Hence, the correct option is 4.